Qantas Supports Qatar Airways Stake in Virgin Australia, with Conditions

Qantas Group has announced it does not oppose Qatar Airways’ plan to acquire a 25% stake in Virgin Australia, though it suggests certain aspects of the partnership warrant further examination. Qatar Airways intends to use wet-leased Boeing 777s for Virgin Australia’s long-haul operations, a proposal currently under review by the Australian Competition and Consumer Authority (ACCC) and the Foreign Investment Review Board.

In an October 31 submission to the ACCC, Qantas Group Executive Cam Wallace acknowledged the potential consumer and industry benefits of Virgin Australia resuming international routes. However, Wallace raised concerns about the competitive implications of the proposed wet leases, particularly if the agreement lacks a time limit or proportion limits for Qatar crewed flights.

“Virgin Australia’s reliance on Qatari pilots and crew, who have lower pay and conditions compared to Australian crew, may reduce incentives for Virgin to develop its own international services staffed with Australian personnel,” Wallace noted. He emphasized the risk that unrestricted wet leasing could bypass Australian regulations, potentially undermining Australian jobs and setting a concerning precedent.

The proposal has gained support from Adelaide, Brisbane, Sydney, and Canberra Airports, along with the Australian Travel Industry Association (ATIA), which backs the partnership with conditions on anti-collusion pricing protections.

Meanwhile, Perpetual Limited has continued divesting from Qantas, reducing its stake to below 5% amid governance challenges within the investment fund.

Related News: https://airguide.info/?s=Qantas

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com